Pilot Gold Inc.

May 10, 2011 07:13 ET

Pilot Gold Adds Copper and Silver to TV Tower Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 10, 2011) - Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce that final assays from Phase 1 drilling at the TV Tower property in northwest Turkey have returned significant copper and silver grades associated with this exciting new gold system.

Drilling focused on zones of outcropping epithermal mineralization at the Kücükdag and Kayali targets, which were identified and advanced to the drill stage over the past three years. Teck Madencilik Sanayi Ticaret A.S. ("TMST"), Teck Resources Limited's Turkish subsidiary, has been Pilot Gold's 60% joint-venture partner and project operator since 2007.

Drilling highlights from the Kücükdag and Kayali targets, include:

Kücükdag target

  • 4.28 grams per tonne gold, 0.68% copper, and 15.82 grams per tonne silver over 136.2 metres and starting from 12.3 metres depth in hole KCD-02, including:
    • 9.51 g/t gold, 1.51% copper, and 34.54 g/t silver over 57.8 metres, including:
      • 30.59 g/t gold, 3.77% copper, and 91.74 g/t silver over 4.7 metres.
  • 16.62 g/t gold, 2.49% copper, and 55.21 g/t silver over 24.2 metres and starting from 78.2 metres depth in hole KCD-03 (located 100 metres northwest of KCD-02), including:
    • 39.54 g/t gold, 5.91% copper, and 142.59 g/t silver over 5.3 metres.

Kayali target

  • 0.87 g/t gold over 114.5 metres starting from 4.5 metres depth in hole KYD-01, including:
    • 2.83 g/t gold over 15.4 metres.
  • 0.78 g/t gold over 88.6 metres starting from 0.4 metres depth in hole KYD-02 (located 200 metres northwest of KYD-01), including:
    • 1.98 g/t gold over 22.5 metres.

All true widths are uncertain due to limited drilling to date but are expected to be 50-90% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. For a comprehensive table of drill results to date, including new and non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1105.pdf

"We are very encouraged by the results of this first round of drilling, which have intersected high-grade gold, copper and silver values near surface," says Ian Cunningham-Dunlop, COO for Pilot Gold. "Given our history of discovery and project advancement in this part of Turkey over the past seven years, and our continued success at the neighbouring Halilaga copper-gold porphyry, we are well positioned to make additional discoveries on the TV Tower property."

The Kücükdag target is characterized by a 750 m x 100 m zone of strong silicification. Gold-copper-silver mineralization is related to multi-phase sulphidic breccias cutting a north-dipping sequence of silicified felsic ash and ash-lapilli tuff. The geometry and extent of this breccia development is unknown at this time and is the focus of further drilling.

The Kayali target, 8 km south of Kücükdag comprises extensive outcroppings of massive to vuggy silica and a strong advanced argillic-argillic alteration pattern over a 2 km x 1.5 km area. Oxide gold mineralization is hosted mainly by an E-W trending structural zone within a silicified lapilli tuff unit. Surface rock channeling returned encouraging values up to 1.3 g/t gold over 74 metres.

Collectively, Kücükdag and Kayali make up only two of eight high priority targets defined on the TV Tower property.

A follow-up 15,000-metre Phase 2 drill program (Pilot Gold's share is approximately $1.5 million) commenced in early April, 2011 with three core drills. The program is focused on expanding the results from Kücükdag and Kayali, with exploration on two additional targets.

TV Tower is a large, road-accessible property covering more than 65 square-kilometres located in the Biga District of northwest Turkey. Target evaluation of the property was first conducted by members of Pilot Gold's technical team (formerly of Fronteer Gold Inc.) in the summer of 2008. Since 2008, TMST has completed detailed geological mapping, PIMA alteration studies, extensive soil and rock geochemical sampling, and ground-based magnetic and IP/Resistivity surveys. Eight high-conviction targets have been identified with widespread epithermal to porphyry characteristics typical of those seen at other deposits in the Biga District.

A total of 19 core holes were drilled (4,184 metres) as part of Phase 1 between August 2010 and January 2011. Preliminary gold-only assays were previously released in the NI 43-101 report entitled "NI 43-101 Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey," dated February 15, 2011, as well as in Fronteer Gold's Management Information Circular dated March 2, 2011. Both documents are available at www.pilotgold.com or on SEDAR at http://www.sedar.com under Pilot Gold's Issuer Profile.

Drill samples and analytical data at TV Tower are collected under the supervision of TMST, using industry standard QA-QC protocols. Ian Cunningham-Dunlop, P. Eng, Vice President, Exploration and COO for Pilot Gold, who is the QP responsible for compiling the data contained in this release, has not verified all the data; however, TMST has given him no reason to doubt their authenticity.


Pilot Gold is a gold exploration company focused on advancing Halilaga, TV Tower and Regent - three strategic gold and copper-gold projects located in Turkey and Nevada. For more information, visit www.pilotgold.com.

For further details on TV Tower, please view the NI 43-101 technical report entitled "NI 43-101 Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey," dated February 15, 2011, prepared by Ian R. Cunningham-Dunlop, P. Eng. and VP, Exploration and COO for Pilot Gold (formerly VP, Exploration for Fronteer Gold), which is available under Pilot Gold's SEDAR profile at http://www.sedar.com.

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking information" within the meaning of applicable Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such forward-looking information, including, but not limited to, information with respect to exploration results, the timing and success of exploration activities generally, permitting timelines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation, timing and possible outcome of any pending litigation, timing and results of future resource estimates or future economic studies and the timing and results of any future development programs involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward looking information. Such factors include, among others, risks related to the interpretation and actual results of current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in Appendix "E" of Fronteer Gold Inc.'s Management Information Circular dated March 2, 2011, which is available under Pilot Gold's SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.

Contact Information

  • Pilot Gold Inc.
    Matt Lennox-King
    President & CEO
    604-632-4677 or Toll Free 1-877-632-4677

    Pilot Gold Inc.
    Patrick Reid
    VP Corporate Development
    604-632-4677 or Toll Free 1-877-632-4677